Five interesting things that Hodges Capital research analysts discovered this week...
#1 NATURE VS. NURTURE: A recent study found that three-quarters of Americans who participated would use polygenic screening if they were already undergoing in vitro fertilization (IVF). Polygenic screening involves testing an embryo’s genome to identify predispositions to certain diseases, expected height, longevity, and even IQ. Several Silicon Valley startups are investing heavily in this technology and believe that as IVF becomes more accessible, the use of polygenic screening will become commonplace. As of now, the U.S. maintains a de facto ban on embryo editing, but that may be the inevitable path for this technology. (The Economist)
#2 COMEBACK KIDS: After suffering brutal selloffs in mid-July, SK Hynix and Samsung have bounced back in August. Both stocks suffered roughly 50% pullbacks from their June highs amid concerns that memory demand would inevitably slow, as it has historically. In response, both SK Hynix and Samsung have looked to lengthen the terms of supply agreements they sign with customers to signal the staying power of memory demand to the market. Furthermore, both companies have decided to utilize their surging cash flows to return capital to shareholders via special dividends or buybacks in hopes of stabilizing their share prices.
#3 SHOWTIME: What is a good consolation prize after failing to buy the World Cup? The Los Angeles Lakers, it seems, according to Joshua Kushner. Weeks after attempting to lead a $4.2 billion investment in the commercial arm of FIFA that was quickly dismantled amid global backlash, Kushner and former Disney CEO Bob Iger agreed to purchase the L.A.-based team for $12.5 billion. The deal comes only a year after the team was sold to Mark Walter for $10 billion, marking one of the shorter ownership tenures in sports history. When Kushner and Iger were asked about the purchase, they likened it to “getting hold of the Mona Lisa.”
#4 METEORIC RISE: On July 31, Microsoft (MSFT) set a new record for the largest single-day increase in market capitalization, adding $450 billion. The record-setting move was supported by strong quarterly earnings and upbeat growth forecasts from management. Microsoft overtook Nvidia, which previously held the record with a single-day gain of $441 billion. Nvidia now holds the second, third, and fourth spots.
#5 CAN’T BUY TIME: A muted July CPI report has left the Fed in the enviable position of having multiple options regarding its policy rate going forward. Leaving aside the energy category, which was the most inflationary category year over year, watch and jewelry prices rose 10.6% and 15.2%, respectively, compared with July 2025, putting them near the top of the “core” categories. (U.S. Bureau of Labor Statistics)
HCM is an Investment Advisory Firm registered with the Securities and Exchange Commission (“SEC”), is a wholly owned subsidiary of Hodges Capital Holdings and serves as investment advisor to the Hodges Funds. HCM is affiliated with First Dallas Securities, Inc, a broker-dealer, and investment advisor registered with the SEC.
This discussion is not intended to be a forecast of future events and should not be considered a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk. Principal loss is possible. Investing in smaller companies involves additional risks such as limited liquidity and greater volatility. No current or prospective client should assume that information referenced in this communication is a recommendation to buy or sell any security or is a substitute for personalized investment advice from your individual advisor. HCM does not provide tax or legal advice. Consult your tax or legal advisor for any related questions.
All information referenced herein is from sources believed to be reliable and is provided as general market commentary and does not constitute investment advice. This material was created for informational purposes only and the opinions expressed are solely those of HCM. HCM shall not in any way be liable for claims and makes no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information. The data and information are provided as of the date referenced and are subject to change without notice.